Only in Zimbabwe would a hamburger actually cost millions of dollars.The central bank of the southern African country has a issued a 10million Zimbabwe dollar note. The move increases the denomination of the nation's highest bank note more than tenfold.Even so, a hamburger in an ordinary cafe in Zimbabwe costs 15 million Zimbabwe dollars.Moreover, Zimbabwe faces the world's highest official inflation of an estimated 25,000 per cent. Independent financial institutions say real inflation is closer to 150,000 per cent.
Acknowledging the inflation crisis, Gono said individuals would be allowed to withdraw an increased limit of 500 million Zimbabwe dollars (£100) in a single daily withdrawal, up from 50 million (£10).
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hyperinflation Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless. Therefore, When associated with depressions, hyperinflation often occurs when there is a large increase in the money supply not supported by gross domestic product (GDP) growth, resulting in an imbalance in the supply and demand for the money. Left unchecked this causes prices to increase, as the currency loses its value.
The priciple of MACROECONOMIC, An inflation that results from an INITIAL increase in aggregate demand is called DEMAND-PULL inflation by the factors as INCREASE in the quantity of money, INCREASE in goverment purchase or INCREASE in export.
Back to ZAMBAWE, on my point of views that strategy of Seignorage is on the short term solution for increase the monies in the market flows for battle inflation,Additionally, Gorvement purcahase boots up the monies flows by encourage decreasing of the price item to shoot up customer purchase index (CPI) for forced the manufacture supply by the products for balanced back the demand and supply till equilibrium point. Or, increase the export other countries a lending monies from the purchaser.
In the last, FISCA POLICY must be interperet in ZAMBAWE in term Gorverment polocies that influnce MACROECONOMIC condition, tax rates, goverment spending in an effort for the economy.
P/s= as i know ZAMBAwe faced of the tradeoff as butter and guns for the military
"PAS has made it compulsory for all of its members to participate in an anti-Internal Security Act (ISA) rally in Kuala Lumpur tomorrow, said its vice-president Salahuddin Ayub." (sources:www.malaysiakini.com)
